subject: Is A Lack Of Financial Education The Reason For Poor Financial Management Decisions In America? [print this page] Americans study all of the essential things in school. Algebra, science, history, languages and the arts. But where are the financial management classes to learn basic financial planning strategies? Most students dont know the first thing about retirement, savings, credit cards, Financial Advisory Services, debt or even basic budgeting strategies. Although some might say this is something that should be taught by parents, todays parents are the byproduct of the credit card generation and many only learned the cause and effect of their financial matters by trial and error. It is not only the parents that are financially challenged. Even teachers lack the training through a biased education system that lacks the very fundamental skills of success needed to achieve fiscal responsibility. Some of those more savvy in the diligence of their finances may seek the services of a financial management advisor, however given todays economic turbulence the very root of the problem has become apparent in our societies apparent financial illiteracy.
According to a recent Financial Buzz Magazine survey, over 60% of all high school students failed certain questions about basic household financial management and were not given the proper role models for financial independence. Across the gamut the media has highlighted examples of adults who have mismanaged their money, losing homes or severely damaging their credit by defaulting on their loan and credit card payments, as well as college students who default on student loans and many other examples. Even big businesses on Wall Street have gone bankrupt and the entire financial system of banking seems to be crumbling right before our very eyes. How then, can we expect our youth to learn about proper financial planning and financial management in amid a society that has accepted financial failure as the norm?
Todays Financial Buzz attributes many of these economic problems not entirely to the fault of any one entity, enterprise, or government but instead to the theory that the need for financial management practices should be taught early on and to everyone in order to create a society of fiscal responsibility. Instead, it is becoming rarer to see a young person who doesnt abuse credit by either racking up high debt, paying late or even bouncing their checking accounts time and time again by relying on unsafe measures such as online banking. Some learn these concepts in college through economics or financial courses, but those students are becoming far and few between.
Financial Buzz Magazine is an advocate of implementing money management classes in schools, which could help future generations of people to learn better financial management strategies even without the guidance of a financial management advisor. Doing so may inspire more financial independence and even more students to become entrepreneurs or to launch their unique small business ideas.
Some critics say that in order to add any more mandatory courses to the education system would require dropping some other important classes. Other say that the public school system is not supposed to be a lesson in life training manual and that those types of learning exercises should be enforced by parents.
However, there are two sides to every coin and with many parents now in deep financial troubles themselves, they may not be the best role models for kids to follow. Foreclosures have reached an all-time high while stocks and securities have reached an all-time low, indicating a big problem with the entire system of financial management and not just a few sprinkled examples here and there. Perhaps financial planning and responsibility should be taught both at home and in school such as other relevant and required subjects. Whats your financial buzz?
